Correlation Between Nordea Norwegian and Dow Jones
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By analyzing existing cross correlation between Nordea Norwegian Stars and Dow Jones Industrial, you can compare the effects of market volatilities on Nordea Norwegian and Dow Jones and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nordea Norwegian with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Norwegian and Dow Jones.
Diversification Opportunities for Nordea Norwegian and Dow Jones
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordea and Dow is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Norwegian Stars and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Nordea Norwegian is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nordea Norwegian Stars are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Nordea Norwegian i.e., Nordea Norwegian and Dow Jones go up and down completely randomly.
Pair Corralation between Nordea Norwegian and Dow Jones
Assuming the 90 days trading horizon Nordea Norwegian Stars is expected to generate 1.0 times more return on investment than Dow Jones. However, Nordea Norwegian is 1.0 times more volatile than Dow Jones Industrial. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.19 per unit of risk. If you would invest 17,360 in Nordea Norwegian Stars on November 28, 2024 and sell it today you would earn a total of 11.00 from holding Nordea Norwegian Stars or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Norwegian Stars vs. Dow Jones Industrial
Performance |
| Timeline |
Nordea Norwegian and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Nordea Norwegian Stars
Pair trading matchups for Nordea Norwegian
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Nordea Norwegian and Dow Jones
The main advantage of trading using opposite Nordea Norwegian and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Norwegian position performs unexpectedly, Dow Jones can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dow Jones will offset losses from the drop in Dow Jones' long position.| Nordea Norwegian vs. Nordea 1 | Nordea Norwegian vs. Nordea North American | Nordea Norwegian vs. Nordea 1 | Nordea Norwegian vs. Nordea 1 |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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